Indian Equity Indices Close Lower Amid Tech Sector Sell-Off
Benchmark equity indices in India concluded Thursday's trading session in negative territory, primarily driven by a significant sell-off in technology stocks. This downturn was fueled by global economic uncertainties and growing apprehensions regarding artificial intelligence (AI)-induced disruptions within the IT services sector.
Key Index Performance and Intraday Movements
The 30-share BSE Sensex experienced a decline of 558.72 points, equivalent to 0.66 percent, settling at 83,674.92. During the session, it plummeted as much as 716.97 points, or 0.85 percent, reaching an intraday low of 83,516.67. Similarly, the 50-share NSE Nifty fell by 146.65 points, or 0.57 percent, closing at 25,807.20.
Technology Stocks Lead the Decline
Technology stocks were the primary contributors to the market slide. Major laggards on the Sensex included Tech Mahindra, Infosys, and Tata Consultancy Services (TCS), each tumbling nearly 6 percent. Other notable stocks ending in the red encompassed HCL Technologies, Mahindra & Mahindra, Hindustan Unilever, Reliance Industries, Eternal, HDFC Bank, IndiGo, Kotak Mahindra Bank, and Adani Ports.
Broader Market and Sectoral Indices Performance
Broader markets also reflected the negative sentiment, with the BSE MidCap Select Index falling 0.48 percent and the SmallCap Select Index slipping 0.28 percent. Among sectoral indices, the Focussed IT index slumped the most by 5.40 percent, closely followed by the IT index, which declined 5.29 percent.
Top Gainers and Losers for the Day
Nifty50 Top Gainers:
- Bajaj Finance (3.12%)
- Shriram Finance (2.47%)
- Eicher Motors (2.22%)
- ICICI Bank (1.70%)
- Trent (1.59%)
- BEL (1.46%)
- SBI (0.81%)
- Asian Paints (0.76%)
- Max Healthcare (0.74%)
- ONGC (0.64%)
Nifty50 Top Losers:
- Tech Mahindra (-5.99%)
- Infosys (-5.84%)
- TCS (-5.49%)
- HCL Tech (-4.87%)
- Wipro (-4.67%)
- M&M (-2.23%)
- HUL (-2.17%)
- Cipla (-1.48%)
- RIL (-1.35%)
- Adani Enterprises (-1.02%)
BSE Sensex Top Gainers:
- Bajaj Finance (3.12%)
- ICICI Bank (1.70%)
- Trent (1.59%)
- BEL (1.46%)
- SBI (0.81%)
- Asian Paints (0.76%)
- Titan Company (0.63%)
- Bajaj Finserv (0.50%)
- UltraTech Cement (0.47%)
BSE Sensex Top Losers:
- Tech Mahindra (-5.99%)
- Infosys (-5.84%)
- TCS (-5.49%)
- HCL Tech (-4.87%)
- M&M (-2.23%)
- HUL (-2.17%)
- RIL (-1.35%)
- Eternal (-0.90%)
- Kotak Bank (-0.77%)
- HDFC Bank (-0.71%)
Expert Insights on Market Sentiment
Vinod Nair, Head of Research at Geojit Investments Limited, provided analysis on the market dynamics. He stated, "A nosedive correction in the IT index triggered by mounting concerns over AI-led disruptions, along with low expectations of a US Fed rate cut due to strong US job data and unemployment rates, dampened investor sentiment." Nair further elaborated that globally, AI is reshaping markets by compressing margins in service-intensive sectors and increasing concentration-led volatility.
He added, "In India, this technology shift is likely to structurally transform IT services by accelerating delivery timelines and automating volume-driven tasks, thereby challenging the traditional headcount-based outsourcing model." Nair also noted that weak sentiment in the IT sector, coupled with lingering geopolitical tensions between the US and Iran, may prompt investors to adopt a cautious approach in the near term.
Asian Market Performance
In contrast to Indian markets, some Asian indices showed positive movements. South Korea's Kospi closed over 3 percent higher, while Japan's Nikkei 225 index and Shanghai's SSE Composite index also ended on a positive note. However, Hong Kong's Hang Seng benchmark finished in negative territory, aligning with the broader cautious trend.
